Prop 201: Join ATOM Economic Zone and adopt ICS

Summary

This is a signaling proposal for the Stride blockchain to join the ATOM Economic Zone and adopt interchain security (ICS) from Cosmos Hub.

If STRD stakers approve this signaling proposal, it would indicate their willingness to join the AEZ and adopt ICS according to the given terms. In this case, the next step would be to make an onchain signaling proposal for Cosmos Hub, which would go live on April 27th. This proposal will only be implemented if both STRD stakers and ATOM stakers approve.

Under this proposal, Stride would share its various revenues with Cosmos Hub as follows:

- 15% of liquid staking rewards
- 15% of STRD inflationary staking rewards
- 15% of maximal extractible value (MEV) revenue
- 15% of transaction fees

In return, Cosmos Hub would share its economic security with Stride. Also, since Stride would be part of the ATOM Economic Zone, Cosmos Hub would share 450,000 ATOM, to be provided to an stATOM/ATOM liquidity pool on Astroport’s Neutron deployment. These funds would be used to facilitate trading between stATOM and ATOM, would not be spent in any way, would remain the property of Cosmos Hub, and would always remain under the control of Cosmos Hub.

This proposal also signals support for a special staking reward reduction of 50% on inflationary STRD staking rewards, to coincide with Stride’s potential adoption of ICS.

Governance votes

The following items describe the voting options and their significance for this proposal:

- YES - You agree with all the terms of this proposal, the main terms being: 1) Cosmos Hub shares its economic security with Stride, 2) Cosmos Hub shares 450K of ATOM liquidity, 3) Stride shares 15% of all its revenues with Cosmos Hub, and 4) inflationary STRD staking rewards are decreased by 50% with a special halvening when Stride adopts ICS
- NO - You do not agree with all the terms of this proposal. You may agree with some terms and disagree with others. But if you do not agree with all terms, vote NO
- NO WITH VETO - You 1) consider this proposal to be spam, 2) believe it infringes on minority interests. If the number of NoWithVeto votes is greater than a third of total votes, the proposal is rejected and the deposits are burned
- ABSTAIN - You wish to contribute to quorum but you formally decline to vote either for or against the proposal

See the full proposal here: https://commonwealth.im/stride/discussion/11131-stride-to-join-atom-economic-zone-and-adopt-ics